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Guinea-Bissau Public Disclosure Authorized GUINEA-BISSAU Cashew and Beyond: Diversification through Trade Public Disclosure Authorized Public Disclosure Authorized Diagnostic Trade Integration Study for the Enhanced Integrated Framework for Trade-related Technical Assistance Public Disclosure Authorized May 2010 CURRENCY EQUIVALENTS Exchange Rate as of May 2010 Currency Unit = CFA Franc (CFAF) US$1 = 499CFAF Weights and Measures Metric System ABBREVIATION AND ACRONYMS ACBF Africa Capacity Building Foundation ANAPA National Association of Artisanal Fisheries Boat-owners ANEP National Association of Fishing Entrepreneurs APGB Port Administration of Guinea-Bissau ARN National Regulatory Agency BCEAO Central Bank of West African States BDS Business Development Services BIGB International Bank of Guinea-Bissau BOAD West African Development Bank BRPE Export Registration Document BRPI Import Registration Document BRS Regional Solidarity Bank CADESPC Unit for the Development of Savings and Credit CAF Training Support Unit CAIA Unit for Evaluation of Environmental Impact CAPAF Capacity-Building Program for microfinance institutions in Francophone Africa CAS Country Assistance Strategy CCIA Chamber of Commerce, Industry and Agriculture CECAF Fishery Committee for the Eastern Central Atlantic CEM Country Economic Memorandum CENFA National Center of Administrative Training CFAA Country Financial Accountability Assessment CGAP Consultative Group to Assist the Poor CI Industrial Contribution CIFC China International Fishing Company CIPA Fisheries Center for Applied Research CNFC China National Fishing Company COPACE Committee for Fisheries of the Central and West Atlantic Ocean CPIA Country Performance Indicator Assessment CPLP Comunity of Portuguese-speaking countries CSDP Community Sustainable Development Plan DENARP Poverty Reduction Strategy Paper DFID Department For International Development (United Kingdom) DGA General Directorate of Customs DGCI General Directorate of Taxes DGM Directorate of Geology and Mining DGPA General Directorate for Artisanal Fisheries DPIP Directorate for the Promotion of Private Investment DRC Domestic Resource Cost ii DSFD Directorate of Decentralized Financial Systems EA Environmental Assessment EAGB Electricity and Water Company of Guinea Bissau EC European Commission ECOWAS Economic Community of West African States EEEAO West African Electrical Energy Exchange EEZ Economic Exclusive Zone EFA Effective Financial Assurance EIA Environmental Impact Assessment EITI Extractive Industries Transparency Initiative EMP Environmental Management Plan ERSUMA Regional College for Magistrates EU European Union FAGACE African Economic Cooperation and Guarantee Fund FAO Food and Agriculture Organization FED European Development Fund FEDERPESCAItalian National Fisheries Federation FIAS Foreign Investment Advisory Service FISCAP Department for Surveillance and Control of Fishing Activities FUNDEI Foundation for Industrial Development GBC Global Business Coalition GDP Gross Domestic Product GEF Global Environmental Facility GNP Gross National Product HIPC Heavily Indebted Poor Countries IBAP Institute of Biodiversity and Protected Areas IBRD International Bank for Reconstruction and Development ICGB Communications Institute of Guinea Bissau ICMM International Council on Mining and Metals IDA International Development Association IFC International Finance Corporation IGV General Sales Tax IIED International Institute for Environment and Development ILO International Labor Organisation IMF International Monetary Fund IVA Value Added Tax JSAN Joint Staff Advisory Note LDP Letter of Development Policy MADR Ministry of Agriculture and Rural Development MCPP Public Private Coordination Mechanism MCS Monitoring, Control and Surveillance MCTA Ministry of Trade, Tourism and Handicrafts MDGs Millennium Development Goals MEPIR Ministry of Economy, Planning and Regional Integration MERN Ministry of Energy and Natural Resources MF Ministry of Finance MFI Micro finance institution MIGA Multilateral Investment Guarantee Agency MIOPCU Ministry of Infrastructure, Public Works, Construction and Urbanism MJ Ministry of Justice MMSD Mining, Minerals and Sustainable Development Project iii MoF Ministry of Fisheries MPA Marine Protected Areas MTEF Medium-Term Expenditure Framework MW Megawatts NANA Northwest Alaska Native Association Regional Corporation NARS National Agricultural Research System NERICA New Rice for Africa NGO Non-governmental Organization NPC Nominal Protection Coefficient NSIA New Inter-African Insurance Company OHADA Organisation for the Harmonisation of Business Law OMVG Organisation for the Development of the Gambia River OMVS Organisation for the Development of the Senegal River PAED/MF Program for the Support and Development of Microfinance PAM Policy Analysis Matrix PAS Strategic Action Plan of SRFC for 2002-10 PDSFI Plan for the Emergence of an Inclusive Financial Sector PER Public Expenditure Review PGAO West Africa Gas Pipeline PNRC Programme National de Renforcement des Capacité PPP Public Private Partnership PRDSP Project for the Reabilitation and Development of the Private Sector PRDSP - IU PRDSP Implementation Unit RECOP/MF Network of Professional Organisations of Microfinance RER Real Exchange Rate SAHFI Sahelian Finance Company SDR Special Drawing Rights SETC Secretary of State for Transport and Communications SIA Social Impact Assessment SME Small and Medium Enterprises SRFC Sub-regional Fisheries Commission SYSCOA West African Accounting System TAC Total Allowable Catch UNDP United Nations Development Program VMS Vessel Monitoring System WAEMU West African Economic and Monetary Union WAPP West Africa Power Pool WARDA West Africa Rice Development Association WFP World Food Program WTO World Trade Organization Vice President: Obiageli K. Ezekwesili Country Director: Habib Fetini Sector Manager: Antonella Bassani Task Team Leader: Philip English iv REPUBLIC OF GUINEA-BISSAU DIAGNOSTIC TRADE INTEGRATION STUDY Table of Contents EXECUTIVE SUMMARY AND PRIORITY ACTION MATRIX ......................... XII 1. THE MACROECONOMIC CONTEXT FOR TRADE ....................................... 1 A. INTRODUCTION ........................................................................................................ 1 B. THE MACROECONOMIC CONTEXT FOR TRADE, GROWTH, AND POVERTY REDUCTION...................................................................................................................... 1 C. THE POLICY REFORM PROCESS................................................................................ 8 2. TRADE PROFILE AND POLICY........................................................................ 15 A. TRADE FLOWS........................................................................................................ 15 B. TARIFF REGIME...................................................................................................... 22 C. TRADE POLICY AND ISSUES .................................................................................... 24 D. TRADE INSTITUTIONS ............................................................................................. 27 E. RECOMMENDATIONS AND NEXT STEPS ................................................................... 27 3. THE ENVIRONMENT FOR DOING BUSINESS.............................................. 33 A. INTRODUCTION ...................................................................................................... 33 B. LEGAL AND REGULATORY CONTEXT FOR BUSINESS IN GUINEA-BISSAU ............... 34 C. CUSTOMS ADMINISTRATION .................................................................................. 39 D. PRIVATE SECTOR SUPPORT INSTITUTIONS ............................................................. 41 E. NEXT STEPS IN IMPROVING THE ENVIRONMENT FOR BUSINESS ............................. 43 4. THE FINANCIAL SECTOR................................................................................. 46 A. INTRODUCTION ...................................................................................................... 46 B. THE BANKING SECTOR........................................................................................... 47 C. NON-BANK FINANCIAL INSTITUTIONS ................................................................... 48 D. MICRO-FINANCE.................................................................................................... 49 E. CONCLUSIONS AND RECOMMENDATIONS............................................................... 55 5. TRANSPORT, ELECTRICITY, WATER AND COMMUNICATIONS......... 58 A. ROADS ................................................................................................................... 58 B. PORTS .................................................................................................................... 61 C. RIVER TRANSPORT ................................................................................................. 66 D. AIR TRANSPORT..................................................................................................... 67 E. ELECTRICITY AND WATER ..................................................................................... 67 F. COMMUNICATIONS................................................................................................. 68 6. CASHEW: FOUNDATION OF THE ECONOMY............................................. 70 A. CASHEW, POVERTY, AND THE MACROECONOMY ................................................... 70 B. CASHEW PRODUCTION ..........................................................................................
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